Feeds

LinkedIn smashes through dire economy with HUGE sales jump

Social-network-for-suits on fire. But forecast dampens numbers

The Essential Guide to IT Transformation

LinkedIn posted its first financial numbers on Thursday, after going public earlier this year, and surprised (almost) everyone by pinning a giddy revenue increase of 120 per cent on its Q2 results.

The California-based company and Google neighbour just so happened to release those figures on what was a very bad day indeed for the world economy, which led to lots of shouts of "sell, sell, sell" over on Wall Street yesterday.

LinkedIn said revenues for the second quarter ended 30 June rose to $121m compared with the same period a year earlier when the then privately held outfit racked up sales of $54.9m.

Net income at LinkedIn was relatively flat, however, with the company notching up $4.5m in Q2. That's a $0.2m jump in one year. Nonetheless, it did mean profit was up on 2010's figures.

Adjusted EBITDA for the period was $26.3m, or 22 per cent of revenue, compared to $11.5m for the second quarter of 2010, or 21 per cent of sales.

The number of people piling into the social-network-for-suits also grew, with an impressive 61 per cent increase to 115.8 million people signing-on compared with the number of people on LinkedIn's books in last year's Q2.

Presumably, a crappy economy is a VERY GOOD THING for the site, which is populated by "professionals", who post their job history and then connect with would-be employers in an attempt for some to get their careers back on track.

"In the second quarter, we saw record levels of members, unique visitors, and page views, while revenue growth further accelerated," said LinkedIn boss Jeff Weiner.

"Going forward, we plan to continue to invest in our team, technology, and products in order to increase the value we deliver to members and realize the full potential of the LinkedIn platform."

Beyond the headline-grabbing $121m revenue figure, the breakdown of sales for the company's Q2 revealed exactly where it generated its cash from.

A 60 per cent increase of LinkedIn's subscription package at $23.9m was relatively subdued when compared with growth in its hiring (170 per cent at $58.6m) and marketing (111 per cent at $38.6m) divisions.

The company also offered Q3 guidance yesterday, saying it expected revenue between $121m and $125m, but margins are likely to be halved with EBITDA projected at $9m-$11m.

LinkedIn, on the eve of its IPO in May this year, valued itself at $4bn. Arguably, the social network's first public Q2 results demonstrate it is still trying to prove its long-term worth. ®

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.